Overview
- City Hall circulated a revenue memo to state lawmakers to address a projected $5.4 billion gap for the fiscal year starting July 1.
- The memo floats shrinking New York’s estate tax exemption to $750,000 and lifting the top rate to 50%, a measure not in Senate, Assembly or governor budgets.
- Mamdani seeks to raise the city income tax rate on households earning over $1 million to 5.88% from 3.88%, which he says would add about $20,000 at $1 million.
- Additional options include a 1% property tax surcharge on homes valued at $5 million or more, a 1% tax on home sales over $1 million, a mansion tax, and a state surcharge on capital gains; he keeps a 9.5% city property tax hike as leverage.
- Legislative leaders advanced income and corporate tax increases in one-house plans as groups like Patriotic Millionaires voice support and polling shows majority backing, while Hochul’s plan excludes the estate change.